Over 30 attendees at Nigel Wright’s latest webinar for HR leaders in the UK food and drink industry enjoyed an engaging presentation by Trevor Newman, Head of Operations for the UK at dsm-firmenich, who provided insight on talent attraction, retention, and development at operator level at the business’s food flavouring manufacturing facility in North Yorkshire.
Trever joined dsm-firmenich in February 2021, bringing with him over 25 years of manufacturing experience including holding senior roles at Coca-Cola, Carlsberg, and A.G. Barr. In just under three years, he has overseen a significant reduction in staff turnover at the dsm-firmenich site, which employs 105 people, coinciding with improvements in performance, engagement, and retention.
Below we outline the key phases of dsm-firmenich’s journey:
Key Challenges Identified
Trevor, supported by dsm-firmenich HR Business Partner, Carol Jackson, identified several key challenges the business needed to overcome to reshape its operations and foster a conducive environment for attracting, retaining, and developing high-performing talent:
- High Agency Reliance: dsm-firmenich had a substantial reliance on agency workers, leading to challenges in attracting high-calibre employees.
- Industry Competition and Bidding Wars: Intense competition in the industry led to bidding wars among employees, impacting turnover.
- Impact of Brexit and COVID: Changes in the labour market due to Brexit and the COVID situation resulted in a loss of personnel, especially from Eastern European countries.
- Rural Location Challenges: Being situated in a rural location posed recruitment challenges, exacerbated by non-competitive compensation packages.
- Perception and Recruitment Challenges: dsm-firmenich was not recognised as a desirable employer, especially when compared to more well-known brands based in the local area.
- Operational Challenges: Weak health and safety standards, poor induction processes, and unpleasant working conditions were identified as operational issues.
Transformation Initiatives
To overcome these challenges, Trevor, Carol and their teams in collaboration with staff at the site, initiated a comprehensive set of changes aimed at improving working conditions, attracting and retaining talent, and fostering employee growth.
- Operational Changes: The company eliminated agency use on-site, introduced a competitive package, and implemented a career progression plan for operators.
- Facility Investment: dsm-firmenich invested significantly in facilities and infrastructure to improve working conditions, addressing issues like offices, changing rooms, and site working conditions.
- Policy Enhancements: New policies were introduced, focusing on promoting benefits such as private healthcare, occupational health programs, and the provision of uniforms.
- Upskilling Programmes: Implemented to provide line managers with the appropriate people leadership capabilities together with updated processes and system changes.
- Induction Process Improvement: A comprehensive induction process with technical trainers on-site was introduced to address the high turnover rates.
- Decentralised Recruitment: Line managers took over the recruitment process, ensuring accountability and diversity in the hiring process.
- Recognition Programs: Formal and informal recognition programs, including financial rewards, were introduced to motivate employees.
- Leadership Development: A new leadership level, Lead Operator, was introduced, emphasising flexibility and providing additional areas of responsibility, as well as developing future talent at the site.
Salary Adjustments
There was recognition of the need to adjust salaries to attract and retain talent. To allow the business to better understand the competitive landscape, benchmarking of salaries began in April 2022. Three key changes to remuneration were implemented following that process:
- Operator Salary Increase: The entrance salary for operators was increased to a more relevant rate for the skills and the location.
- Differential Salary Structure: Differentiated salary structures were introduced based on production areas and shift patterns.
- Pay Progression and Shift Premium: Pay progression for operators and a shift premium were implemented, considerably reducing overtime pay at double time.
- Technical Operator 10% higher than Operator.
- Lead Operator 30% higher than Operator.
- Achieving these levels requires strong performance, good safety standards, and being multi-skilled across the operation.
Employee Health and Well-being Initiatives
In addition to salary adjustments, dsm-firmenich also introduced additional benefits related to improving employee health and well-being. The development of these initiatives was done in collaboration with employees at all levels, who are passionate about this area.
- Occupational Health Assessments: Annual assessments were conducted for all employees, with a more extensive examination for those on the shop floor.
- Mental Health First Aid: Trained mental health first aiders play a crucial role in supporting employees, indicating the importance of mental health support.
- Flu Vaccinations: Annual distribution of flu vaccinations to employees is part of the comprehensive occupational health initiatives.
- Employee Well-being Programs: dsm-firmenich now offers various employee assistance programs, health checks, and gamified health promotion programs.
Discipline and Recognition
To improve safety standards at the site, dsm-firmenich refreshed its disciplinary procedures and introduced employee recognition and reward schemes to properly acknowledge staff demonstrating the right behaviours.
- Disciplinary Actions: Twelve disciplinary actions were taken for misconduct, emphasising consistent and effective disciplinary processes.
- Shift Champions Program: Introduced in August 2023, involving passionate production managers working with individuals from the shop floor.
- Recognition of Operators: Recognition of operators as vital contributors with valuable insights into challenges and solutions.
Conclusion: Impact of Changes
Trever confirmed that transformation activities at dsm-firmenich during the last three years have led to several positive outcomes for the business. In addition to overall improvements in working conditions, some of the key metrics include:
- Stabilisation of turnover from 45% to 15% by September 2023.
- A 30% increase in output.
- Consistent 90% customer service/OTIF (on-time in-full) performance.
- Reduced inventory.
The webinar provided valuable insights into dsm-firmenich’s journey since 2021, showcasing the challenges faced and the transformative initiatives implemented to address them. dsm-firmenich’s commitment to continuous improvement, employee health and well-being, and talent development serves as a compelling case study for other organisations operating in the food and drink industry.